Japanese Company Will Open Plastics Plant in Valley
December 18, 2007
A Japanese company today announced plans to invest more than $100 million to build a specialty plastics plant at Belle, creating about 50 new jobs.
Kureha Corp., a producer of specialty chemicals and plastic products headquartered in Tokyo, made the announcement.
The project will occupy some of the vacant land inside the fence line at DuPont's Belle plant. Local and state economic development experts have been seeking such projects for years. Land inside existing plants became available over the past decade as operators downsized and cleared away obsolete facilities.
Companies that locate inside existing plants gain access to utilities and services such as security, helping both operators reduce costs. In the case of Kureha, its new plant will use a raw material made on site by DuPont.
Kureha said it will create a new subsidiary to produce a high-performance polymer, polyglycolic acid, also known as PGA, at Belle. Construction is scheduled to begin early next year with production to start in early 2010. The company said hiring will begin next year and continue until production starts. Hiring will be through several sources including Workforce West Virginia, formerly known as the state Bureau of Employment Programs.
PGA is a polyester resin that offers a gas barrier that is 100 times higher than that of polyethylene terephthalate, Kureha said. The use of PGA in soft drink and beer containers made of polyethylene terephthalate, also known as PET, can reduce the amount of PET in those containers by 20 percent while maintaining the equivalent barrier against carbon dioxide loss, the company said.
"This bottle design has the potential of yielding cost reduction as well as source reduction opportunities in the marketplace," Kureha said. "Perhaps most importantly, PGA's unique hydrolytic properties make it highly compatible with widely practiced industrial PET recycling processes, ensuring the material does not interfere with the purity and quality of recycled PET."
Takao Iwasaki, president and chief executive officer of Kureha Corp., said in a prepared statement, "The establishment of this PGA business is another milestone in Kureha's vision of becoming a specialty products company, radically redefining the way we approach our markets and customers.
"With the development of this breakthrough technology and the strong intellectual property surrounding our work, PGA will become a centerpiece in the company's strategy of focusing on value-added, highly differentiated products, setting us on a path of strong growth and profitability."
"PGA definitely fits in the sweet spot of Kureha's focus on the triple bottom line: economic, environmental and social responsibility," Iwasaki said. "Our aim is to maximize value while remaining committed to environmental and compliance issues, and in doing so, contribute to the local community as a responsible corporate citizen.
"When considering the potential unique and diverse opportunities for PGA, we estimate the business could eventually achieve a turnover in excess of $1 billion."
Gov. Joe Manchin said in a prepared statement, "I am excited that Kureha has selected West Virginia for its newest manufacturing location, and proud that such a revolutionary product will be made in the Mountain State.
"This new partnership of Kureha Corp., DuPont and West Virginia proves that we can compete in the global chemical manufacturing marketplace."
Sen. Jay Rockefeller, D-W.Va., said in a prepared statement that he is thrilled Kureha has become the 20th Japanese company to invest in West Virginia.
"Our state has seen so much growth and success with Japanese companies in recent years, and I have no doubt that with this innovative product being made in Belle, that growth will only continue," he said.
"Each time you see an important announcement like the one Kureha made today, what you're really seeing are more sound investments in our state's economy, more jobs for West Virginians, and further validation that West Virginia is a serious competitor in the global marketplace."
Bill Menke, manager of DuPont's Belle Plant, said in a prepared statement, "We believe the new Kureha plant is a great synergistic fit with our operations here at Belle. It also will support our infrastructure at the site to make all of our businesses more competitive."
Iwasaki said that for many years there was no high-volume, cost-effective manufacturing process for PGA. Its production has therefore been limited to relatively small-scale operations for the manufacture of surgical sutures.
Kureha said it is the first and only company that succeeded in developing technology to produce large volumes of PGA. A 100-ton pilot plant was built at Kureha's Iwaki Factory in Japan in 2002. Kureha said it has been vigorously developing applications for PGA.
According to Kureha's Web site, the company was established in 1944 and has 3,776 employees.
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